HUSD Loses 72% of Its Value After Delisting from Huobi
Once-popular stablecoin HUSD has seen a dramatic decline, plummeting from its peg of $1 to a low of $0.28 following Huobi's announcement of its delisting of the 'homegrown' stablecoin on Friday, October 28.
HUSD Price Fluctuations Over the Last 7 Days, Data from CoinMarketCap at 05:15 PM on 31/10/2022
Huobi stated that holders can still exchange HUSD for Tether (USDT), the largest stablecoin in the industry by market capitalization.
Stablecoins are designed to maintain a stable value, typically pegged to fiat currencies like the USD, GBP, or EUR. Earlier this year, the stablecoin market was rocked by the collapse of Terra USD (UST), which led to a cascading failure of the entire Terra ecosystem, erasing $60 billion from the market.
Now, HUSD, issued by Stable Universal, is facing its own challenges. The stablecoin unexpectedly depegged in mid-August 2022.
In recent weeks, Tron founder Justin Sun has taken on a senior role at Huobi. One of his major moves has been to replace HUSD with his own stablecoin, USDD. This shift has fueled speculation that Sun might be the actual owner of Huobi.
Once actively promoted by Huobi since its launch in 2018, HUSD now has a market cap of only $63 million, a significant drop from its all-time high of over $1 billion in 2021.
